Laytime
Laytime is the period agreed in a charter party during which the charterer may load or discharge the vessel without extra charge. If cargo operations run over the allowed time, the charterer pays demurrage to the shipowner; if they finish early, the owner may pay despatch (usually at half the demurrage rate).
Laytime is set either as a fixed number of days or as a loading/discharge rate (e.g. tonnes per day). It is governed by clauses in the charter party covering when the clock starts (notice of readiness), what interrupts it (weather, holidays) and how it is calculated.
Laytime is the clock that decides whether a voyage charter makes or loses money on port time. Days saved earn despatch or free the ship for its next fixture; days lost cost demurrage. For owners and charterers alike, managing laytime accurately is where real money is won or lost.
A charter allows loading at 10,000 MT per day for a 50,000 MT cargo, giving 5 days of laytime. If loading takes 7 days, the charterer owes 2 days of demurrage; if it finishes in 4 days, the owner may pay 1 day of despatch.
What is despatch?
Despatch is a reward the shipowner pays the charterer for completing loading or discharge in less than the allowed laytime — commonly at half the demurrage rate.
What is the difference between laytime and demurrage?
Laytime is the free time allowed for cargo operations; demurrage is the penalty that begins once laytime is exceeded.